Adre Scmidtgall, the country retail manager at IKEA Korea. [Courtesy of IKEA Korea]
IKEA, a Swedish furniture company will invest KR\ 1.2 trillion (U.S$ 1.01 billion) in order to add five more outlets in South Korea by 2020, the company said on Wednesday.
Launched its business in the suburban area of Seoul last year, IKEA’s affect on the industry and consumer market were phenomenal. The furniture giant posted KR\ 308 billion (U.S$ 262 million) in sale since the launch.
Following the successful start, IKEA plans to open five more stores in next five years. Next outlet will open in Paju, just at the north of Seoul, more outlets will open in Seoul and its suburban area, plus two outlets in the central and south region of Korea.
“Korea is a great market with great potential, with growing numbers of customers who are interested in home furnishing.” said Adre Scmidtgall, country retail manager at IKEA Korea.
Growing number of single person households moving their home in an average of every two years helped the IKEA in its boom. The majority of the people looked for affordable, but good looking furniture which could be simply disassembled and reassembled when they move home.
Since its opening, 6.7 million people visited the store. Hundreds of people lined up for hours just to get into the mega-sized store were an everyday view. IKEA was loved by Korean people for its comparably affordable, sturdy, and great designs.
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